Full customs duty exemption on critical petrochemicals till 30 June 2026
The Finance Ministry on 2 April 2026 granted a full customs duty exemption on critical petrochemical products till 30 June 2026 because of supply disruptions from the West Asia conflict.
Summary
The Government granted a full customs duty exemption on critical petrochemical products till 30 June 2026 in view of the ongoing conflict in West Asia and the resulting disruptions in global supply chains, the Ministry of Finance said on 2 April 2026. Described as temporary and targeted relief, the measure aims to keep critical petrochemical inputs available to domestic industry, reduce cost pressure on downstream sectors such as plastics, packaging, textiles, pharmaceuticals, chemicals and automotive components, and provide relief to consumers. Products in the annexure include anhydrous ammonia, toluene, styrene, vinyl chloride monomer, methanol, monoethylene glycol, phenol, acetic acid and purified terephthalic acid.
Key facts
- Measure
- Full customs duty exemption
- Valid till
- 30 June 2026
- Reason
- West Asia conflict; supply-chain disruption
- Sample products
- Ammonia, toluene, styrene, VCM, methanol, MEG, phenol, acetic acid, PTA
- Beneficiaries
- Plastics, packaging, textiles, pharma, chemicals, auto components
Practice MCQs 2 questions
Till which date has the full customs duty exemption on critical petrochemical products, announced on 2 April 2026, been granted?
Show answer
Correct answer: C — 30 June 2026
The Finance Ministry said the exemption is till 30 June 2026.
Consider the following statements about the customs duty exemption on critical petrochemicals announced on 2 April 2026: 1. It is a permanent reduction in customs duty. 2. Methanol (methyl alcohol) is among the products covered. Which of the statements given above is/are correct?
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Correct answer: B — 2 only
Only 2 is correct. The ministry called it temporary and targeted relief valid till 30 June 2026, and methanol is listed in the annexure.